Germany's battery sector faces a crucial year as production and trade depend on overcoming a dip in the appeal of battery-electric cars, according to the ZVEI trade group. Despite positive figures from last year, with market volumes rising by 32 per cent to €23.2 billion ($24.84 billion) due to strong demand for lithium-ion batteries, the industry is cautious about future trends. Gunther Kellermann, managing director of ZVEI's battery section, noted uncertainty over a recovery following the scaling back of electric vehicle (EV) support at the end of 2023. He acknowledged a positive shift but refrained from making forecasts. Germany ended its EV subsidies after spending €10 billion from 2016 to 2023, leading to a drop in the EV market share to 12 per cent last month, down from 14.3 per cent in 2023. This decline has raised concerns about affordability, consumer confidence in the EV range, and safety. Demand for lithium-ion batteries, which are crucial for e-mobility, electricity storage, medical equipment, and smartphones, grew by 58 per cent year-on-year and accounted for 81.5 per cent of the market volume. Christian Rosenkranz, chairman of ZVEI's battery section, emphasised the need for better EV charging infrastructure, a more secure supply of raw materials like lithium and cobalt, and cheaper energy. He also called for reduced bureaucracy and increased research funding for sodium-ion batteries to lessen reliance on lithium. Attribution: Reuters.
